Tax Administration 2024

1. Introduction

Abstract

This chapter provides an overview of the content of the 2024 edition of the OECD’s Tax Administration Series.

How tax administrations respond to a constantly changing environment has been a recurring theme of previous editions of the OECD’s Tax Administration Series (TAS). These changes have frequently been driven by external factors such as responding to the digitalisation of the wider economy, technological innovation and the COVID-19 pandemic. As a result, tax administrations have been changing their operating models to address these challenges and to find new ways of meeting changing taxpayer expectations for services; all while supporting a workforce that is adapting to new operating models, technologies, and workplace arrangements.

These changes can take many years to implement, and the incremental progress has been reflected in the previous editions of the TAS as it has in this 2024 edition. This edition also considers a number of additional aspects based on numerous additional data points collected in the 2023 International Survey on Revenue Administration (ISORA) which have not been collected since 2018. With this periodic data, only captured every five years, TAS 2024 provides, amongst other things, more insight into how tax administrations:

• Are setup and the governance arrangements put in place;

• Understand and manage compliance risk;

• Prevent and address non-compliance;

• Identify and meet taxpayer service preferences; and

• Manage their workforce.

Alongside the ISORA 2023 survey, the tax administrations covered in the TAS were also invited to provide examples of innovative practices that they are undertaking to help achieve their objectives. They have provided a rich source of over 100 examples, covering a wide range of topics. While these examples do not form a basis for comparison across tax administrations in the same way as the ISORA data points can in some circumstances, they do add more colour to the data, and give pointers to the strategic direction of travel of tax administrations globally.

Furthermore, this edition of the TAS continues to use information from the Inventory of Tax Technology Initiatives (ITTI) (OECD et al., 2024[1]). ITTI collects data on the digital transformation and digitalisation work of tax administrations from across the globe, and this rich source of data can provide further insight into the developments taking place in tax administration, facilitating mutual learning and collaboration.

Regardless of the context that a tax administration operates in, the core objective remains the same, namely the timely and accurate collection of tax revenues to fund public services. Chapter 2 explores this topic in more detail, and provides statistics on the range and value of taxes that administrations are responsible for. In addition, it also comments on other key responsibilities that go beyond tax collection.

Central to achieving their objective is the work of tax administrations to ensure that all relevant taxpayers are registered and can be identified, as necessary, both quickly and securely. Chapter 3 sets out the work of tax administrations in this field, including how they are increasingly involved in whole of government plans on digital identity.

Chapter 4 which looks at the tax assessment function, including all activities related to processing tax returns and payments. This chapter examines the use of e-channels for filing and paying, and outlines administrations’ efforts to provide pre-filled returns, as well as the levels of on-time return filing and payment.

Providing services aligned with taxpayer expectations and supporting them in meeting their tax obligations, is essential for high levels of voluntary compliance. Chapter 5 highlights the work of tax administrations in this space, and how they are encouraging “self-service” by taxpayers. This is part of a more fundamental change whereby tax administration becomes a seamless process, with non-compliance and administrative burdens increasingly “designed out”.

Managing compliance is at the centre of Chapter 6 which explores how tax administrations are identifying compliance risks, often through the use of data and new technology tools. This chapter further comments on the actions taken against those who fail to meet their obligations, looking at approaches used to prevent and address non-compliance before and after tax returns are filed.

Chapter 7 looks at how tax administrations manage the collection of outstanding taxes, and examines the features of a modern tax debt collection function. This chapter also provides an overview of available collection powers and how they are used.

However, inevitably, disputes between taxpayers and tax administrations do arise, and Chapter 8 considers those processes, including how taxpayer rights are safeguarded, as well as the checks and balances on the exercising of tax powers by administrations.

Like all government bodies, tax administrations are ultimately accountable to the citizens they serve. Operating in a fair and impartial manner and being subject to checks and balances is necessary for a well-functioning tax system. Chapter 9 looks at the framework within which this accountability operates, including the institutional arrangements and government structures in place.

Underpinning all this work are the resources that are available to tax administrations. Chapter 10 provides information on the resources that tax administrations have at their disposal, and describes how tax administrations are managing their people.

Finally, Chapter 11 of this edition of the TAS contains a special feature which explores in great detail how tax administrations are estimating tax gaps, including looking at key tax gap concepts and examples of international experiences in tax gap research.

References

[1] OECD et al. (2024), Inventory of Tax Technology Initiatives, https://web-archive.oecd.org/tax/forum-on-tax-administration/tax-technology-tools-and-digital-solutions/index.htm (accessed on 10 September 2024).